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Introduction
The Subam Papers IPO is a book-built issue of Rs 93.70 crores, comprising entirely of a fresh issue of 61.65 lakh shares.
Subscription for the Subam Papers IPO commences on September 30, 2024, and concludes on October 3, 2024. The finalisation of allotment for the Subam Papers IPO is anticipated to take place on Friday, October 4, 2024.
The Subam Papers IPO is set to be listed on the Bombay Stock Exchange (BSE) Small and Medium Sized Enterprises (SME) with a provisional listing date of Tuesday, October 8, 2024.
The price band for the Subam Papers IPO ranges between Rs 144 and Rs 152 per share. The minimum lot size for an application is 800 shares. Retail investors are required to invest a minimum amount of Rs 1,21,600. High-Net-Worth Individuals (HNI) are required to invest in 2 lots (1,600 shares), totaling Rs 2,43,200.
Gretex Corporate Services Limited is the book-running lead manager for the Subam Papers IPO, and Bigshare Services Pvt Ltd is the registrar. Gretex Share Broking acts as the market maker for the Subam Papers IPO.
Subam Papers Ltd IPO details
Summary of IPO Details
| Particulars | Details |
| IPO Date | September 30, 2024 to October 3, 2024 |
| Face Value | Rs 10 per share |
| Price Band | Rs 144 to Rs 152 per share |
| Lot Size | 800 Shares |
| Total Issue Size | 61,64,800 shares (aggregating up to Rs 93.70 Crores) |
| Fresh Issue | 61,64,800 shares (aggregating up to Rs 93.70 Crores) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE SME |
| Shareholding pre-issue | 1,70,80,070 |
| Shareholding post- issue | 2,32,44,870 |
| Market Maker portion | 3,08,800 shares (by Gretex Share Broking) |
Timeline for IPO-related events
| Particulars | Details |
| IPO Open Date | Monday, September 30, 2024 |
| IPO Close Date | Thursday, October 3, 2024 |
| Allotment Date | Friday, October 4, 2024 |
| Initiation of Refunds | Monday, October 7, 2024 |
| The credit of Shares to Demat | Monday, October 7, 2024 |
| Listing Date | Tuesday, October 8, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on October 3, 2024 |
Different Investor categories and shares offered
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net Issue |
| Retail Shares Offered | Not less than 35.00% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15.00% of the Net Issue |
Applicants, lot size, shares offered, and their value
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 800 | Rs 1,21,600 |
| Retail (Max) | 1 | 800 | Rs 1,21,600 |
| HNI (Min) | 2 | 1,600 | Rs 2,43,200 |
Subam Papers Ltd IPO GMP
The grey market premium (GMP) of the Subam Papers Limited IPO is yet to start. Once it gets started its details will be updated here.
| GMP Date | IPO Price | GMP | Sub2 Sauda Rate | Estimated Listing Price | Last Updated |
| 27-09-2024 | 152 | Rs 0 | — | Rs 152 (0%) | 27-09-2024, at 10:59 hrs IST |
| 26-09-2024 | 152 | Rs 0 | — | Rs 152 (0%) | 26-09-2024, at 23:30 hrs IST |
Subam Papers Ltd Company Details
Subam Papers Limited, founded in October 2006, specialises in producing Kraft Paper and paper products. It uses waste as its primary raw material.
As of March 31, 2024, Kraft Paper’s installed capacity is 300 metric tons per day (MTPD), equating to an annual capacity of 93,600 tons.
The company offers various products, including Kraft Paper and Duplex Boards in multiple colours, with gram per square metre (GSM) ranging from 120 to 300, a Busting Factor of 16 to 35, and Deckle sizes from 2,000 to 4,400 milli meters (MM).
Additionally, the reel diameters can reach up to 1,400 MM. This broad product range is designed to appeal to our stakeholders.
These products cater to diverse industries such as automobiles, textiles, FMCG, food, distilleries, pharmaceuticals, electrical and electronics, and printing, all of which require reliable packaging solutions.
In 2023, the company obtained the EN ISO 9001:2015 certification for producing and marketing packaging paper.
The company promotes environmental sustainability through paper waste recycling and sustainable packaging solutions. It is making investments in water pumping stations and connecting pipelines to ensure efficient water distribution.
Its strategic location near the Thamirabarani River provides it with an advantage in water accessibility. The company leverages ERP technology for effective inventory management and has implemented a fully automated manufacturing process to enhance productivity and efficiency.
Financials of the company
Extract from the financial statements of the company for the last three years
| Particulars | As of 31-03-2024 (Rs in lakhs) | As of 31-03-2023 (Rs in lakhs) | As of 31-03-2022 (Rs in lakhs) |
| Assets | 46,046.10 | 41,434.65 | 39,418.33 |
| Revenue | 49,697.31 | 51,062.36 | 33,259.87 |
| Profit After Tax | 3,341.80 | -26.79 | 2,600.23 |
| Net Worth | 19,904.12 | 16,562.32 | 16,589.11 |
| Reserves and Surplus | 19,741.35 | 16,399.55 | 16,426.34 |
| Total Borrowing | 18,340.77 | 16,282.61 | 15,573.37 |
Key ratios as of March 31, 2024
| KPI (Key Performance Indicator) | Values as of March 31, 2024 |
| ROE | 16.79% |
| ROCE | 20.84% |
| Debt/Equity | 0.92:1 |
| RoNW | 16.79% |
| P/BV | 1.24 |
| PAT Margin | 6.77% |
In the above table, the key ratios consist of ROE (Return on Equity), ROCE (Return on Capital Employed), Debt to Equity ratio, RoNW (Return on Net Worth), P/BV (Price to Book Value), and PAT (Profit After Tax) Margin.
The company Subam papers limited has a market capitalisation of Rs 353.32 crores as of March 31, 2024.
Subam Papers Ltd IPO RHP
The red herring prospectus (RHP) comes with risks related to the IPO, as described below.
Risks related to litigations
The company has certain an outstanding litigation pending against it.
Uncertainty regarding the outcome of ongoing litigation, potential adverse effects on business operations due to complaints or legal actions, and the possibility of legal action by employees or former employees emphasise the need for more assurance that complaints or claims will not lead to investigations, inquiries, or legal actions by regulatory authorities or third parties.
Risks related to GST notices
Earlier, the company was also issued Goods and Service Tax (GST) Notices by the GST Department. There were two notices which were for an amount of Rs 282.71 lakhs and Rs 1,494.72 lakhs respectively.
The notice included tax, penalty, and interest. If the business is unable to pay the amount, then the business may operationally and financially. Also, it may harm its reputation in the market.
Risks related to existing customers
The company hasn’t entered into any long-term contract with its present customers. The company is heavily dependent on its present customers. If the company isn’t upto the expectations of its customers, and if they are unable to fetch new orders from them, then, it will hinder the financial conditions and operations of the business.
Risks related to regulatory permits
It is also mentioned that regulatory and statutory approvals are very important for conducting business.
In extreme cases, the inability to secure or sustain and prolong the requisite permits and approvals may have a detrimental effect on the business and its outlook, operating results, and financial position. Timely action is imperative to mitigate the risks associated with the failure or delay in obtaining these approvals.
Risks related to contingent liabilities
The firm recognizes a few contingent liabilities like Rs 1,486.41 lakhs of Income tax liabilities and Rs. 2,000 lakhs of Bank Guarantees. In the scenario where the company defaults in making the payments, the financial position of the company will be detrimental.
Frequently Asked Questions (FAQs)
What is the Subam Papers Ltd IPO Opening date & closing date?
The opening date of Subam Papers Ltd IPO is on September 30, 2024. The closing date of the IPO is October 3, 2024.
When is the Subam Papers IPO Allotment date?
Friday, October 4, 2024, is the tentative allotment date for the above IPO.
What is the Subam Papers Ltd share price?
The price band of the above IPO ranges from Rs 144 to Rs 152 per share.
Who is the market maker of the Subam Papers Limited IPO?
Gretex Share Broking is the market maker for the Subam Papers IPO.
What is the Subam Papers Ltd IPO Lot size?
The minimum lot size for the retail investors is 800 shares for one lot.
When is the Subam Papers Limited IPO Listing date?
The Subam Papers IPO’s listing date on BSE SME is on Tuesday, October 8, 2024.
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